The AUDUSD moved to the lowest level since July 14 yesterday and in the process tested an old trendline. That trendline was broken in June as the price moved to the lowest level since June 1, 2020 (tested that swing area from 2020). The price has moved back toward the 50% of the range for the pair since the March 2020 pandemic low. That level comes in at 0.6756. The high price in the early Asian session did scooted up to 0.6773, but has since rotated back to the downside.
Looking at the hourly chart, the run higher off the low yesterday at 0.66984, saw the price extend right up to the 100 hour moving average (blue line in the chart below) and was also near swing lows from last Thursday and again on Monday near 0.6771 (see red numbered circles on the hourly chart below).
Sellers leaned against the dual levels, and pushed the price back down. Admittedly, the price action today has been up and down although it remains lower on the day. As a result buyers and sellers are battling it out with a more bearish bias.
Ultimately with the price stalled against the 100 hour moving average, getting above that level and staying above that level would be the prerequisite for the buyers to take more control. A move above that level would look toward the 200 hour moving average at 0.68088. You have to go back to August 30 for the last time the price traded above that 200 hour moving average.
PS. On August 31 the high price stalled against that level and that helped to lead to the rotation to the downside (and the more bearish bias since that test). So getting above that moving averages also needed to give the buyers more confidence and control.
